If you’re planning to import a car into Pakistan in 2025, understanding the latest custom duty, tax structure, and SRO updates is essential. The government revised several import regulations in the Federal Budget 2025–26, significantly impacting vehicle prices across engine types, fuel variants, and categories.
Key Highlights for 2025
| Duty/Tax | Update |
|---|---|
| Regulatory Duty (RD) | Reduced by up to 40% for cars above 1800cc |
| Additional Customs Duty | Lowered from 7% to 6% on all cars |
| New “Car Tax” | 1% to 3% of vehicle value based on engine size |
| EV Import Incentive | 15% CD on CBU EVs up to 50kWh; 1% CD on EV CKD kits |
| Used Car Age Limit | Extended to 5 years (with phased-in surcharge) |
Read More: Additional Custom Duty in Pakistan 2025: Complete Guide to Rates, Applicability & Exemptions
Updated Car Tax Rates – Effective July 1, 2025
| Engine Capacity | New Car Tax on Value |
|---|---|
| 0 – 1299 cc | 1% |
| 1300 – 1799 cc | 2% |
| 1800 cc and above | 3% |
Total Import Cost Breakdown (2025)
| Cost Component | Typical Range | Applies To |
|---|---|---|
| Customs Duty (CD) | 45% – 75% | Petrol/Diesel vehicles |
| Customs Duty (Hybrid) | 30% – 50% | Hybrid vehicles |
| Customs Duty (EV) | 15% | CBU EVs ≤ 50 kWh |
| Additional Customs Duty | 6% | All imported vehicles |
| Regulatory Duty (RD) | 0% – 40% | Based on engine size and fuel type |
| Sales Tax (ST) | 18% | On total CIF value + all duties |
| Federal Excise Duty (FED) | 5% – 20% | Applicable on cars >1700cc & SUVs |
| Advance Income Tax (AIT) | 2% – 7% | Based on engine size & filer status |
Step-by-Step Import Cost Example
Example: Importing a 1500cc petrol car with CIF value of USD 10,000.
| Cost Type | Calculation | Amount (USD) |
|---|---|---|
| Customs Duty (CD) | 55% of 10,000 | 5,500 |
| ACD | 6% of 10,000 | 600 |
| RD | 16% of 10,000 | 1,600 |
| Subtotal | — | 7,700 |
| Sales Tax (18%) | 18% of 17,700 | 3,186 |
| Advance Income Tax | 4% of 17,700 (filer) | 708 |
| Total Estimated Cost | — | $11,494 |
Note: Port, shipping, and miscellaneous clearance fees are not included.
Documents Required for Import
- Original Bill of Lading (within 120 days of vehicle dispatch)
- Foreign invoice and proof of payment
- Passport copy with 700+ days of overseas stay (for TR scheme)
- Right-hand drive EPA compliance certificate
- E-form M or online import entry (HS Code 8703)
Import Channels and Rules
| Import Scheme | Vehicle Age Limit | Special Notes |
|---|---|---|
| Baggage Scheme | Up to 5 years old | For returning overseas Pakistanis |
| Transfer of Residence | Up to 5 years old | Overseas stay must exceed 700 days |
| Gift Scheme | Up to 5 years old | Close relative gift with documentation |
| Commercial Import | Any age (from Sept 2025) | 40% surcharge initially, phased down till 2029 |
Duty Exemptions & Reliefs
| Category | Relief Provided |
|---|---|
| EVs (≤ 50kWh) | 15% CD on CBU; 1% CD on CKD kits |
| Hybrids (<1800cc) | 50% CD concession |
| Disabled Persons | One vehicle every 5 years at 5% CD |
| CKD Kits (<1000cc) | 0% CD on local assembling parts |
| Diplomatic Staff | Duty-free under FBR Schedule IV (with NOC) |
Tips to Minimize Your Duty
- Choose hybrid or EV models to reduce base customs duty.
- Ship vehicles before end of fiscal year to avoid policy revisions.
- Work with PSW (Pakistan Single Window) for documentation efficiency.
- Maintain verifiable bank records of foreign payments.
Conclusion
Pakistan’s revised custom duty structure in 2025 offers significant relief on regulatory and additional duties, especially for larger engine cars and electric vehicles. However, accurate calculation and understanding of the tax layers remain essential to avoid surprises.
Whether you are an overseas Pakistani bringing back a vehicle or a commercial importer, staying informed about the latest SROs, duty rates, and exemptions can help you save both time and money. Keep visiting: Bloom Pakistan
Read More: How to Export a Car to Pakistan in 2025: Complete Process, Rules & Customs Duties Guide
